Analyst Concall
Cipla says to ramp up lanreotide supply in US from Mar
This story was originally published at 18:29 IST on 28 January 2025
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--Cipla: No increase in Oct-Dec Revlimid sales QoQ
--CONTEXT: Cipla management's comments in post-earnings call with analysts
--Cipla: See ramping up of lanreotide supply in US from March onwards
--Cipla: To launch one peptide based pdt in Jan-Mar
--Cipla: Plan to launch at least 3 new peptide pdts in next 15 months
--Cipla: To launch 2-3 new respiratory products in next 15 months
--Cipla: Share of respiratory pdts in portfolio to go up in future
--Cipla: Keen to protect margins in South Africa tender business
--Cipla: Actively looking for acquisitions in US, other geographies
--Cipla: Revlimid sales in US may be similar to Oct-Dec in coming quarters
--Cipla: Prepared to grab first wave of semaglutide opportunity in India
--CONTEXT: Semaglutide is GLP-1 drug to treat obesity
--Cipla: See more competition for Revlimid after patent expires in 2026
By Narayana Krishna and Simran
HYDERABAD/MUMBAI – After facing supply challenges for the last few quarters, Cipla Ltd. is gearing up to increase its generic injection Lanreotide supply in the US from March, the company management said at a post-earnings conference call on Tuesday.
Lanreotide, which has annual sales of around $900 million in the US, is used to treat tumours. The company has faced supply challenges due to regulatory issues at its partner sites and lost significant sales since it got approval from the US Food and Drug Administration in May. The company management said the issues at the partner site are more or less resolved, and the supplies have been picking up gradually.
The Mumbai-based pharmaceutical major's consolidated net profit rose 49% on year to INR 15.71 billion for the quarter, beating analysts' estimate of INR 12.16 billion by a wide margin. This was the highest on-year growth in the company's net profit in three quarters. The company's revenue for the quarter rose by 7.1% on year to 70.73 billion.
Cipla management said the growth in Oct-Dec was led across all segments despite some sluggishness in the US market. The company's North American revenue fell 2% on year to $226 million in Oct-Dec. If adjusted for the supply and disruption in Lanreotide, the revenue would have been on a growth trajectory, the management said.
The company is not expecting any rise in sales of its version of its cancer generic drug Revlimid in coming quarters and it will be similar to Oct-Dec going forward. There are at least eight generic companies currently selling the drug in the US, which has nearly $3 billion annual sales. The management said as the patent for Revlimid is set to expire in January 2026, there will be more competitors entering the fray and the market will change entirely.
NEW LAUNCHES
Cipla management said there is a huge backlog of product launches lined up to drive the growth in the US as well as other markets in the next few years. The company is gearing up to launch three peptide-based products in the next 15 months, which includes one in the March quarter.
The company is also planning to increase its portfolio of products in the respiratory segment, which is a key growth driver for Cipla. It is planning to launch at least 2-3 new products in this category in the next 15 months. The management said it is confident of driving growth in the South African market, though the company is more focused on margins while competing for the tenders.
On the capital allocation side, Cipla said it is actively looking for inorganic growth opportunities. Besides potential companies, the company is also looking at valuable product assets in the US and other geographies.
On GLP-1 category opportunities, Cipla's management said the company will be present in the market with its version of semaglutide product to grab the first wave of opportunity. Semaglutide is a GLP-1 product used to treat obesity.
On Tuesday, shares of Cipla ended at INR 1,420.60 on the National Stock Exchange, up 1.8% from the previous close. End
US$1 = INR 86.5225
Edited by Saji George Titus
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